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Construction companies are no strangers to using huge pieces of equipment. Figuring out the best way to finance machinery is part of the overall workings of these companies.

If you look at the overall picture of your company, you might decide that lease-to-purchase may be the right option for you. The bottom line is running your business in the most cost-efficient way possible.

“New” May Not Be A Gold-Paved Road

Smaller companies may be hard-pressed to be in a position to buy new equipment and financing new purchases may not be an option for you right now. Larger outfits need many pieces, so they too may opt to lease or rent.

Things To Ponder

How Much Available Cash You Have — Your bank account needs to be pretty healthy to purchase new equipment. And if you’ve got most of your capital tied down in new equipment, you may run into cash flow problems in the future. When you purchase equipment, you’ll have to lay down a lot of cash for a down payment. If you choose to lease, you more than likely won’t need a down payment and you will probably be able to negotiate a payment option to fit your particular needs.

More Flexibility In Leasing. It’s more than likely your company is involved in more than one project at a time and will only need certain pieces of equipment for certain jobs. When leasing, you’ll be able to pick the term that’s right for your jobs and for your budget. You may also be able to do a “trade-up” on the equipment. For instance, if the term is half done and the leased piece is no longer required, you may be able to lease a different piece.

Dollar buyout lease: you can purchase the equipment with small payments;

Wrap lease: combining several lease payments into one;

Sale leaseback: Selling your new equipment to another company who initially leases it from you.

These are all options you might want to discuss in detail with your loan provider. Whether you need an excavator, a backhoe or any other large piece of equipment, Truck Loan Center is your go-to place. They’ll be able to fashion an agreement suitable to your particular needs. Give them a call today.